ASX Small Caps Lunch Wrap: Goldies and Health shine, Wisetech woes still weigh

Local markets were generally up on Monday morning, but were held back by Wisetech and MinRes ructions.

The threat was clear: feel better, or Randall would be vaporised on the spot. Pic: Getty Images

Local markets were up at lunchtime today, but there’s no escaping the fact it'd be a much better result, except the unfolding tawdry drama at Wisetech Global has cast a pall over the rest of the results.

Overall, things look great, though. The goldies are firing on all cylinders again, with that sub-sector flying to a 2.7 per cent gain since the market opened, Resources overall are plodding along nicely around +1 per cent and everything else is moving nicely.

Except for InfoTech, and that’s in the murk by 2.5 per cent, almost entirely because market heavyweight WiseTech Global (ASX:WTC) is being sold off heavily – yes, again – in the wake of its founder’s private life hassles.

TO MARKETS

In more detail, here’s what’s happening on the ASX today – 10 of 11 sectors were in the green paint at lunchtime to varying degrees, with Materials, Health Care and Energy all close enough to +1 per cent each.

Lagging a little were the Telcos, and Industrials – and a very clear last place belongs to InfoTech, which is Wisetech’s fault.

At midday, here’s how the sectors looked:

Source: Market Index

And here’s how the sub-indices looked:

Source: Market Index

The goldies in particular are having another bumper day, up nicely while the price of gold holds steady at a new all time high, around  $US2723/oz.

The major losses from Monday morning, however, can be attributed to separate stories in the headlines, concerning three of the country’s biggest players in their respective fields – namely, Wisetech Global, BHP (ASX:BHP) and Mineral Resources (ASX:MIN).

I’ll start with MinRes, with founder and managing firector Chris Ellison’s personal tax situation coming under scrutiny over allegations raised in the media that he has been avoiding his tax obligations.

For what it’s worth, the board at MinRes has told the ASX that it hads full confidence in Ellison’s leadership,  but that did come with something of a caveat.

"Since its IPO in 2006, payments made by MinRes to offshore entities connected with Mr Ellison related to pre-IPO sales contracts that were recognised as liabilities in the company's financial statements at the time," the board said in an announcement to the ASX.

"As to his private tax matters, Mr Ellison self-reported to the Australian Taxation Office, repaid amounts owed and disclosed these matters to the board.

"While this does not diminish what happened, Mr Ellison profoundly regrets his errors of judgment."

Mineral Resources was sold off heavily on Monday morning, down 10.7 per cent at lunchtime.

Meanwhile the Wisetech Global scandal, which we wrote about last week, is deepening.

The company was sold off heavily again this morning after it was revealed that embattled founder and CEO Richard White disposed of 351,058 shares at $131.22 between 11-17 October, pocketing roughly $46 million in folding money.

I don’t have the time nor the energy to re-tell the whole story here – but Wisetech chairman Richard Dammery is reportedly engaged in a series of meetings with the company’s major investors in a bid to hose down the controversy.

Wisetech was down more than 16 per cent early in the session on Monday.

And the third major headline is from BHP, which is reportedly set to sign off on an eye-wateringly massive $US30 billion ($47.2 billion) settlement for the 2015 Mariana dam collapse.

By the looks of things, that settlement has been looming for quite some time, and investors have climbed back on board with BHP on Monday, boosting its price around 1.4 per cent since the market opened.

NOT THE ASX

On Friday, the S&P 500 climbed 0.4 per cent, reaching a new all-time high and marking its sixth consecutive week of gains – the longest streak of 2024.

The tech-heavy Nasdaq led the way with a 0.63 per cent gain, while the blue chips-focused Dow Jones added 0.09 per cent.

In US stock news, Netflix’s post-market results on Thursday eased concerns about Big Tech facing challenges in the third quarter. The streaming giant’s profit shot up, smashing Wall Street estimates, and both revenue and subscriber growth came in stronger than analysts expected. Shares were up 11 per cent.

Tesla shares dropped 0.1 per cent after the US National Highway Traffic Safety Administration (NHTSA) announced an investigation into the company’s full self-driving (FSD) technology.

The NHTSA is looking into reports of four crashes that occurred while the FSD software was being used in situations with poor visibility,  such as when there’s sun glare, fog, or dust in the air. The investigation will involve about 2.4 million Tesla vehicles in the US – essentially every Tesla that has the FSD capability.

Wedbush analyst Dan Ives reported that iPhone sales in China had jumped 20 per cent since September 20, when Apple launched the iPhone 16 and Huawei released a new model.

Although Apple has lagged behind Huawei in China this year, this data has calmed concerns about weak initial iPhone 16 sales. Apple shares were up 1.23 per cent.

American Express jumped nearly 3 per cent after stronger-than-expected profit for Q3 and an upgrade to its full-year outlook, driven by solid consumer spending.

Coinbase saw its shares jump nearly 8 per cent, riding the wave of Bitcoin’s recent surge. Bitcoin climbed nearly 10 per cent last week and is getting close to the $US70,000 mark.

In Asian market news, China’s central bank lowered interest rates on Monday morning. It’s literally happened as I was writing this, so I’m gonna leave it to someone who knows a lot more about this to write it up later in the day.

Japan’s Nikkei was up slightly in early trading, and the rest of the major Asian markets are still waking up, so no big news from there.

ASX SMALL CAP WINNERS

Here are the best-performing ASX small cap stocks for  October 21:

Code	Name	Price	% Change	Volume	Market Cap
PUA	Peak Minerals	0.0045	125.0	58,261,777	$4,994,221
YRL	Yandal Resources	0.195	95.0	2,995,274	$26,780,761
VR1	Vection Technologies	0.015	50.0	59,048,144	$13,265,890
CAV	Carnavale Resources	0.004	33.3	12,747,115	$12,270,655
EXL	Elixinol Wellness	0.004	33.3	3,013,925	$4,680,214
GCR	Golden Cross	0.004	33.3	1,275,332	$3,291,768
DOU	Douugh	0.012	33.3	31,958,096	$9,738,620
GRL	Godolphin Resources	0.018	28.6	2,903,303	$4,426,957
88E	88 Energy	0.0025	25.0	3,727,876	$57,867,624
EVR	EV Resources	0.005	25.0	20,400	$5,585,086
RIL	Redivium	0.005	25.0	28,008	$10,987,419
VML	Vital Metals	0.0025	25.0	254,841	$11,790,134
BML	Boab Metals	0.16	23.1	4,154,412	$30,341,364
TZL	TZ Limited	0.06	22.4	631,641	$12,572,573
QFE	Quickfee	0.12	21.2	194,215	$33,334,959
KAU	Kaiser Reef	0.21	20.0	4,622,490	$35,777,681
PR2	Piche Resources	0.12	20.0	93,758	$8,029,054
ERL	Empire Resources	0.003	20.0	805,599	$3,709,783
OVT	Ovanti	0.031	19.2	202,533,914	$40,465,057
AUZ	Australian Mines	0.014	16.7	22,870,678	$16,782,145

Yandal Resources (ASX:YRL) has been rising quickly on news that the first assay results from the 12 hole, 2400m RC program completed across New England Granite structural targets in early October had been received. The results showed 78m @ 1.2 g/t Au from 96m to end-of-hole in 24IWBRC0039, including 5m @ 3.2g/t Au from 102m, and 5m @ 2.8g/t Au from 139m. The remaining results from this drill program are expected over the next 2-4 weeks.

Vection Technologies (ASX:VR1) was rising on news that it had partnered with IT giant Dell to launch its AI-based ‘Algho’ platform, securing its first sale of $500,000. The company says the launch is “testament to the value and potential of Vection’s acquisition of TDB” – the acquisition TDB, which supplied the generative AI layer which powers Vection’s ‘Algho’ platform, goes before shareholders for approval on Monday, October 28.

Carnavale Resources (ASX:CAV) was up on news that it had commenced an extensional drilling program at the high-grade Swiftsure deposit within the Kookynie Gold Project, testing extensions to the Swiftsure bonanza gold grade shoots that contain zones of +30g/t within the resource. The company says it will monitor the drilling carefully and modify the program to chase the best mineralisation as it is encountered.

Elixinol Wellness (ASX:EXL) was up on news that it will be consolidating its securities, from 1.56 billion to a somewhat more manageable 195 million, with the process to be voted on as part of the company’s AGM later this month.

TZ (ASX:TZL) was up on news that it’s entered into a Heads of Agreement to acquire Proptech company, Keyvision Holdings – a “high margin, recurring revenue proptech company that provides Tenant Experience Apps for the property sector: Residential; Commercial; Retail; Aged Care and Community Groups”, according to the announcement.

Quickfee (ASX:QFE) was up after releasing a quarterly business update this morning, revealing quarterly revenue of $5.6 million, up 33 per cent on pcp. The increase was driven by “strong growth in the core Finance product in both Australia and the US”, and has the company set for an expected FY25 EBTDA in the range of $1.5 -$2.5 million, with a stronger second half-year.

Kaiser Reef (ASX:KAU) climbed on Monday morning on news that it had received firm commitments for a placement of Kaiser shares at $0.15 per share to raise $8 million (before costs) to complete the last stage of the A1 Mine production plan. The funds have been earmarked for completion of the A1 Mine ramp up and expansion for high-grade gold production, and the resumption of drilling at the A1 Mine.

Vital Metals' (ASX:VML)  news was an AGM announcement, and Peak Minerals' (ASX:PUA) news was a response to an ASX speeding ticket on price and volume.

Earlier, Environmental Clean Technologies (ASX:ECT) is up on news of the signing of a Joint Venture Agreement with ESG Agriculture, advancing from the Heads of Agreement signed in July 2024. The company says it marks a significant milestone in the progression of the COLDry Lignite-Nitrogen Fertiliser Project.

TMK Energy (ASX:TMK) was up on news that the first of the three additional pilot production wells at the Gurvantes XXXV Coal Seam Gas (CSG) Project, being drilled as part of the 2024 drilling program, has been successfully drilled to a total depth of 480m and has intersected approximately 60m of net coal, which is “as per prognosis and consistent with the existing three surrounding pilot production wells”.

ASX SMALL CAP LOSERS

Here are the most-worst performing ASX small cap stocks for October 21:

Code	Company	Price	%	Volume	Market Cap
SI6	SI6 Metals	0.001	-50.0	1,916,063	$4,737,719
NSM	North Stawell	0.019	-45.7	2,205,130	$5,627,152
KLI	Killi Resources	0.092	-36.6	9,343,057	$20,332,443
PRX	Prodigy Gold	0.002	-33.3	55,800	$6,997,367
AAU	Antilles Gold	0.003	-25.0	1,482,628	$7,422,971
EFE	Eastern Resources	0.003	-25.0	375,000	$4,967,786
IBG	Ironbark Zinc	0.003	-25.0	1,050,000	$7,334,591
SFG	Seafarms Group	0.003	-25.0	64,214	$19,346,397
CC9	Chariot Corporation	0.21	-25.0	300,731	$25,095,801
BPP	Babylon Pump & Power	0.005	-16.7	75,000	$14,997,294
BUY	Bounty Oil & Gas	0.005	-16.7	5,351,166	$8,991,006
CMD	Cassius Mining	0.005	-16.7	42,430	$3,252,027
LPD	Lepidico	0.0025	-16.7	1,335,339	$25,767,375
POS	Poseidon Nickel	0.005	-16.7	531,217	$25,223,253
PRM	Prominence Energy	0.005	-16.7	820	$2,335,058
CMO	Cosmo Metals	0.023	-14.8	120,000	$3,536,808
CDD	Cardno	0.27	-14.3	421,114	$12,304,109
1AI	Algorae Pharma	0.006	-14.3	5,583,202	$11,811,763
GLA	Gladiator Resources	0.012	-14.3	200,000	$10,616,156
RBX	Resource B	0.03	-14.3	34,807	$2,893,957

ICYMI – AM EDITION

Maiden drilling at Javelin Minerals' (ASX:JAV)brownfields Coogee gold-copper asset, 55km southeast of Kalgoorlie, has been increased by 30 per cent to 3000m after priority targets were identified in earlier drilling.

The first phase of drilling will begin in mid-late November, testing several strong gold-copper targets close to the mined Coogee Deposit and over the surrounding areas.

Despite hosting a resource 126,685oz of gold and being located next to the world-class St Ives goldfield, Coogee has not had a systematic exploration drilling campaign undertaken around the Coogee pit since Ramelius (ASX:RMS) completed mining operations in 2014.

A program of eork (PoW) has been approved and a drilling-for-equity agreement has been signed with highly regarded contractor Topdrill.

Titanium Sands (ASX:TSL) has completed its presentation to the Central Environment Authority (CEA) and 34 key stakeholders from various governmental departments at a formal meeting held recently at the CEA head office in Colombo, Sri Lanka.

The objectives of this meeting were to hear from all stakeholders and for TSL to have the opportunity to present its scoping plan and next steps for the Mannar heavy mineral sands project.

A combined site visit by all the interested stakeholders is set to take place next, followed by the terms of reference (TOR) being issued to the company.

“The key stakeholder presentation was a significant step in the evolving environmental process and as outlined by the Director General himself, now allows for the planning of the next steps leading to the finalisation of the process and then the issue of the IML for Mannar,” TSL managing director Dr James Searle said.

Chariot Corporation (ASX:CC9) has raised $1.61m following a placement of 8.09m shares at an issue price of 20c per share, which was strongly supported by a group of institutional, sophisticated and professional investors.

The existing cash reserves combined with the proceeds of the placement will fund phase 2 drilling at the Black Mountain lithium project, the fourth purchase price payment to Black Mountain Lithium Corp, execution of the pilot mine strategy and metallurgical test work in Perth.

“With this funding, we are now well positioned to pursue our medium-term plans,” CC9 managing director Shanthar Pathmanathan said.

“Additionally, with two series of options set to expire this year and further funds anticipated from the sale of listed shares from past divestments, this capital raise serves as a strong bridge to meet our future liquidity requirements.”

Zeotech (ASX:ZEO) has received a $905,000 R&D tax incentive relating to the Australian government’s R&D Tax Incentive Program, which provides a cash refund on eligible research and development activities performed by Australian companies.

The refund relates to the company’s expenditure on development of its proprietary mineral processing technology for the sustainable production of manufactured zeolites.

It also reflects its spending on advancing its dual stream agri-soil product development, methane emissions control technology and high reactivity metakaolin research for low-carbon cement and concrete from his high-purity Toondoon kaolin project.ZEO has used $589,248.19 to repay the secured research & development loan with R&DIUM Capital and has banked the remaining $316,636.28.

Mt Malcolm Mines (ASX:M2M) has produced an inaugural gold doré bar from the bulk sampling program at the Golden Crown prospect.

With a combined weight of 13.85 ounces (431g), the company said the two gold doré bars mark a significant milestone.

Visible gold was observed in the rock chip samples collected from the zones of mineralisation, with 11 of the 30 samples returning assays of over 5g/t gold as well as a top result of 458.39g/t gold.

“The inaugural gold doré bar represents a significant achievement in the gravity processing at Golden Crown, and we are thrilled to have reached this key milestone,” M2M managing director Trevor Dixon said.

“These promising results strengthen our confidence in the prospect’s economic potential, and we are excited to proceed with further work to unlock its full value.”

At Stockhead we tell it like it is. While Javelin Minerals, Titanium Sands, Chariot Corporation, Zeotech and Mt Malcolm Mines are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as ASX Small Caps Lunch Wrap: Goldies and Health shine, Wisetech woes still weigh